liquidnet trades 500 millionth share in october
and they are new. Just to put astn's news item in perspective
NEW YORK, October 24, 2001 New York
LIQUIDNET TRADES ITS 500 MILLIONTH SHARE,
SAVED MEMBERS $54 MILLION IN 2 QUARTERS
Liquidnet, the alternative trading system (ATS) exclusively for institutional investors, said that it traded its 500 millionth share yesterday. The ATS also said that based on figures from the Plexus Group second quarter 2001 analysis, Liquidnet saved its Members approximately $26 million in trading costs for NYSE and Amex listed stocks and approximately $28 million in trading costs for NASDAQ listed stocks, compared with other means of executing trades.
"Many of our institutional clients have begun to use Liquidnet and realize the benefits of anonymous trading and the reduced market impact costs that result when crosses occur without intermediaries, said David Hall, President of the Plexus Group, a Los Angeles-based transaction process adviser to investment managers, plan sponsors, and brokerage firms.
"Based upon data from the second quarter of 2001, the average trade executed on Liquidnet cost 26 basis points less than our execution benchmark for exchange-listed stocks and 67 basis points less for NASDAQ-listed stocks," Hall said.
Seth Merrin, Liquidnet founder and CEO, said "Every dollar we save our Members on execution costs directly benefits the shareholders and pension fund beneficiaries on whose behalf they manage funds."
Liquidnet's average trade size is more than 71,000 shares compared to an average of 800 shares for all other exchanges and execution venues. More than 90 percent of Liquidnet Members' trades have been completed within the bid/ask spread, indicating their trades are being completed without moving the market.
Merrin added, "With six large institutions signed last week, we crossed the 100 Member threshold in just six months, which is a testament to the value we bring to the marketplace." Liquidnet Members manage more than $3.7 trillion in aggregate equities and their average size exceeds $35 billion.
Glenn Schorr, financial services analyst for Deutsche Bank, said, "Liquidnet's ramp-up to 500 million shares is the fastest of any ATS I've seen."
About Liquidnet:
Liquidnet is an alternative trading system (ATS) for large institutional investors designed to allow the trading of large blocks of stocks anonymously with minimal market impact costs. Liquidnet's unique architecture and model have solved the major problem facing B2B exchanges and ATS's-building a critical mass of liquidity. Through advanced Internet-enhanced technologies, Liquidnet has created a community of large institutions that brings liquidity to the trader, reversing the current paradigm of searching for liquidity.
Liquidnet is a registered broker/dealer, headquartered in New York City, with offices in Boston, Chicago and Los Angeles. Additional company and product information is available online at www.liquidnet.com.
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